The DWP is calling for evidence on how the pensions market is evolving in response to automatic enrolment, and how employers are choosing to fulfil their automatic enrolment duties. In particular, the DWP is seeking views and evidence on the impact of the annual contribution limit and the transfer restrictions placed on the National Employment Savings Trust ("NEST"), by exploring:
- whether the perceived complexity of the constraints is inhibiting employer choice, even where the workforce is in NEST's target market;
- the extent to which commercial providers are able to supply low-cost provision to a very diverse range of employers as automatic enrolment gathers pace; and
- whether the balance between employer choice and consumer interests shifts as automatic enrolment captures smaller employers.
The consultation also seeks views on a range of possible alternative approaches should the Government conclude that action is required. The consultation period closes on 28 January 2012 and the Government's response should be published during Spring 2013.
The consultation paper can be read by clicking here.